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Warren Buffett's Margin of SafetyIn the world of investing, few names carry as much weight as Warren Buffett. Often hailed as the Oracle of Omaha, Buffett's wisdom has guided countless investors to financial success. At the core of his investment philosophy lies a concept he considers paramount: the Margin of Safety. Buffett once famously said that the three most important words in investing are "Margin of Safety." To delve deeper into this principle, he pointed to Chapter 20 of "The Intelligent Investor," a seminal work by Benjamin Graham, which he deemed the best chapter ever written on the subject. Chapter 20: The Concept of a Margin of Safety At its essence, the Margin of Safety revolves around the idea that every stock has a fair (intrinsic) value based on the underlying company. However, this fair value often deviates significantly from the stock's current market price. No Margin of Safety: When the stock price exceeds its fair value, there is no margin of safety. Margin of Safety: When the stock price falls below its fair value, a margin of safety exists. Benefits of the Margin of Safety Investing in any asset for less than its intrinsic value is a sound financial decision. However, in the world of investing, where determining precise fair values can be elusive, this principle holds even greater significance. One can never pinpoint an exact fair value; they can only estimate a range. The Margin of Safety serves as a shield against potential errors in estimating fair value. The Mathematical Advantage A Margin of Safety provides two critical mathematical advantages: Downside Protection: Avoiding losses is paramount in investing. It takes a 100% gain to recover from a 50% loss. Therefore, preventing losses should be a top priority. Exponential Returns: Imagine a stock with a fair value of $10 but currently trading at $8, offering a 25% upside. Now, if that same stock were available for $5, the upside potential would skyrocket to 100%. A Margin of Safety can turn a good investment into an exceptional one. Why Do Margins of Safety Exist? The concept of Mr. Market, introduced by Benjamin Graham, plays a pivotal role in understanding the existence of Margins of Safety. Mr. Market is depicted as an impulsive individual, prone to bouts of depression (selling stocks at a discount) and exuberance (selling at a premium). Stock markets exhibit such fluctuations due to the psychological biases and errors of market participants. Understanding this human element is crucial in grasping the significance of Margins of Safety. In the words of Warren Buffett himself, "If you understand chapters 8 and 20 of 'The Intelligent Investor' and chapter 12 of 'The General Theory,' you don't need to read anything else." These chapters provide a foundation for investors to navigate the complexities of the market with the wisdom of a Margin of Safety. In conclusion, the Margin of Safety isn't just a concept; it's a guiding principle that can safeguard your investments and unlock their full potential. Buffett's reverence for this idea underscores its importance in achieving success in the world of finance.
Education
by Vestinda
Kelly Criterion and other common position-sizing methodsWhat is position sizing & why is it important? Position size refers to the amount of risk - money, contracts, equity, etc. - that a trader uses when entering a position on the financial market. We assume, for ease, that traders expect a 100% profit or loss as a result of the profit lost. Common ways to size positions are: Using a set amount of capital per trade . A trader enters with $100 for example, every time. This means that no matter what the position is, the maximum risk of it will be that set capital. It is the most straight-forward way to size positions, and it aims at producing linear growth in their portfolio. Using a set amount of contracts per trade . A trader enters with 1 contract of the given asset per trade. When trading Bitcoin, for example, this would mean 1 contract is equal to 1 Bitcoin. This approach can be tricky to backtest and analyse, since the contract’s dollar value changes over time. A trade that has been placed at a given time when the dollar price is high may show as a bigger win or loss, and a trade at a time when the dollar price of the contract is less, can be shown as a smaller win or loss. Percentage of total equity - this method is used by traders who decide to enter with a given percentage of their total equity on each position. It is commonly used in an attempt to achieve ‘exponential growth’ of the portfolio size. However, the following fictional scenario will show how luck plays a major role in the outcome of such a sizing method. Let’s assume that the trader has chosen to enter with 50% of their total capital per position. This would mean that with an equity of $1000, a trader would enter with $500 the first time. This could lead to two situations for the first trade: - The position is profitable, and the total equity now is $1500 - The position is losing, and the total equity now is $500. When we look at these two cases, we can then go deeper into the trading process, looking at the second and third positions they enter. If the first trade is losing, and we assume that the second two are winning: a) 500 * 0.5 = 250 entry, total capital when profitable is 750 b) 750 * 0.5 = 375 entry, total capital when profitable is $1125 On the other hand, If the first trade is winning, and we assume that the second two are winning too: a) 1500 * 0.5 = 750 entry, total capital when profitable is $2250 b) 2250 * 0.5 = 1125 entry, total capital when profitable is $3375 Let’s recap: The trader enters with 50% of the capital and, based on the outcome of the first trade, even if the following two trades are profitable, the difference between the final equity is: a) First trade lost: $1125 b) First trade won: $3375 This extreme difference of $2250 comes from the single first trade, and whether it’s profitable or not. This goes to show that luck is extremely important when trading with percentage of equity, since that first trade can go any way. Traders often do not take into account the luck factor that they need to have to reach exponential growth . This leads to very unrealistic expectations of performance of their trading strategy. What is the Kelly Criterion? The percentage of equity strategy, as we saw, is dependent on luck and is very tricky. The Kelly Criterion builds on top of that method, however it takes into account factors of the trader’s strategy and historical performance to create a new way of sizing positions. This mathematical formula is employed by investors seeking to enhance their capital growth objectives. It presupposes that investors are willing to reinvest their profits and expose them to potential risks in subsequent trades. The primary aim of this formula is to ascertain the optimal allocation of capital for each individual trade. The Kelly criterion encompasses two pivotal components: Winning Probability Factor (W) : This factor represents the likelihood of a trade yielding a positive return. In the context of TradingView strategies, this refers to the Percent Profitable. Win/Loss Ratio (R) : This ratio is calculated by the maximum winning potential divided by the maximum loss potential. It could be taken as the Take Profit / Stop-Loss ratio. It can also be taken as the Largest Winning Trade / Largest Losing Trade ratio from the backtesting tab. The outcome of this formula furnishes investors with guidance on the proportion of their total capital to allocate to each investment endeavour. Commonly referred to as the Kelly strategy, Kelly formula, or Kelly bet, the formula can be expressed as follows: Kelly % = W - (1 - W) / R Where: Kelly % = Percent of equity that the trader should put in a single trade W = Winning Probability Factor R = Win/Loss Ratio This Kelly % is the suggested percentage of equity a trader should put into their position, based on this sizing formula. With the change of Winning Probability and Win/Loss ratio, traders are able to re-apply the formula to adjust their position size. Let’s see an example of this formula. Let’s assume our Win/Loss Ration (R) is the Ratio Avg Win / Avg Loss from the TradingView backtesting statistics. Let’s say the Win/Loss ratio is 0.965. Also, let’s assume that the Winning Probability Factor is the Percent Profitable statistics from TradingView’s backtesting window. Let’s assume that it is 70%. With this data, our Kelly % would be: Kelly % = 0.7 - (1 - 0.7) / 0.965 = 0.38912 = 38.9% Therefore, based on this fictional example, the trader should allocate around 38.9% of their equity and not more, in order to have an optimal position size according to the Kelly Criterion. The Kelly formula, in essence, aims to answer the question of “What percent of my equity should I use in a trade, so that it will be optimal”. While any method it is not perfect, it is widely used in the industry as a way to more accurately size positions that use percent of equity for entries. Caution disclaimer Although adherents of the Kelly Criterion may choose to apply the formula in its conventional manner, it is essential to acknowledge the potential downsides associated with allocating an excessively substantial portion of one's portfolio into a solitary asset. In the pursuit of diversification, investors would be prudent to exercise caution when considering investments that surpass 20% of their overall equity, even if the Kelly Criterion advocates a more substantial allocation. Source about information on Kelly Criterion www.investopedia.com
Education
by sofex
4
Navigating Volatile Markets Navigating Volatile Markets: Strategies for Turbulent Times Introduction Financial markets are no stranger to volatility, with unpredictable twists and turns that can test even the most seasoned investors. However, turbulent times need not be daunting. In this blog post, we will explore strategies to help you navigate volatile markets with confidence, turn uncertainty into opportunity, and make informed investment decisions during challenging times. 1. Stay Informed, Not Overwhelmed During periods of market volatility, it's essential to stay informed about market developments and economic indicators. However, avoid becoming overwhelmed by constant news updates and opinions. Focus on reliable sources and maintain a balanced perspective. 2. Diversify Your Portfolio Diversification is a time-tested risk management technique. Spread your investments across different asset classes, industries, and geographic regions. A well-diversified portfolio can cushion the impact of volatility on your overall holdings. 3. Set Clear Goals and Stick to Your Plan Define clear financial goals and create an investment plan tailored to your objectives and risk tolerance. During turbulent times, emotions may tempt you to deviate from your plan. Stay disciplined and trust in the strategy you have set forth. 4. Consider Defensive Investments Explore defensive investments, such as bonds, dividend-paying stocks, and precious metals. These assets may provide stability during market downturns and act as a hedge against heightened volatility. 5. Focus on Quality In uncertain times, prioritize quality over speculative bets. Look for companies with solid fundamentals, stable cash flows, and strong balance sheets. Quality assets are better equipped to weather economic storms. 6. Assess Long-Term Value Volatility can create buying opportunities. Look for high-quality assets that have been oversold due to market sentiment rather than inherent flaws. Assess their long-term value and potential for recovery. 7. Implement Stop-Loss Orders Use stop-loss orders to protect your capital from significant losses. Set stop-loss levels that align with your risk tolerance and allow you to exit positions if the market moves against you. 8. Avoid Panic Selling Resist the urge to panic sell during market downturns. Selling low locks in losses and may hinder your ability to benefit from potential market rebounds. 9. Focus on Risk Management Adopt prudent risk management practices. Only allocate a portion of your portfolio to higher-risk assets and avoid overexposing yourself to individual positions. 10. Seek Professional Advice If navigating volatile markets feels overwhelming, consider seeking advice from a financial advisor. A professional can help you assess your financial goals, devise a tailored strategy, and stay on track during turbulent times. Conclusion Volatility is an inherent part of financial markets, but with the right strategies and a disciplined approach, you can navigate turbulent times with confidence. Stay informed, diversify your portfolio, and focus on long-term value rather than short-term fluctuations. Remember, every market cycle presents opportunities. Embrace volatility as a chance to refine your investment approach, grow your wealth, and turn uncertain times into prosperous outcomes. Happy investing, and may your journey through volatile markets lead you to a more secure financial future!
NASDAQ:TSLAEducation
by MindOverMarket
The ABCs of Risk Management in Stock TradingThe ABCs of Risk Management in Stock Trading Introduction In the exhilarating world of stock trading, mastering the art of risk management is a crucial skill that separates successful traders from the rest. Effective risk management is all about safeguarding your capital and minimizing potential losses while maximizing opportunities for profit. In this blog post, we will explore the ABCs of risk management in stock trading and how it can lead to more sustainable and rewarding trading experiences. A - Assessing Risk Tolerance Before delving into the markets, it's essential to evaluate your risk tolerance. Be honest with yourself about how much capital you can afford to put at risk without causing emotional distress. Your risk tolerance will determine your position sizing and the percentage of your portfolio allocated to each trade. B - Balancing Diversification Diversification is a key risk management strategy. Avoid putting all your funds into a single stock or sector. By diversifying your portfolio across different assets, industries, and geographic regions, you reduce the impact of any individual investment's adverse performance on your overall portfolio. C - Cutting Losses with Stop-Loss Orders Stop-loss orders are a trader's best friend. Implementing stop-loss levels before entering a trade ensures that you automatically exit a position if it goes against you beyond a predetermined point. This helps protect your capital and prevent significant losses. D - Doing Your Due Diligence Knowledge is power in the stock market. Thoroughly research and analyze potential trades before executing them. Understand the company's fundamentals, technical indicators, and market trends to make informed decisions and reduce the element of surprise. E - Emotion Management Emotions can cloud judgment and lead to impulsive decisions. Successful traders maintain emotional discipline and stick to their trading plans, regardless of market fluctuations. Embrace a rational approach to trading and avoid letting emotions dictate your actions. F - Focusing on Risk-Reward Ratio A positive risk-reward ratio is a fundamental aspect of risk management. Aim to take trades with higher potential rewards than the associated risks. This means that even if some trades result in losses, profitable trades should outweigh them over time. G - Gradual Position Sizing Avoid going all-in on a single trade. Gradually scale into positions, especially in volatile markets. This way, you can manage risk and adjust your exposure as market conditions change. Conclusion As you venture into the exciting world of stock trading, remember that managing risk is paramount to long-term success. By following the ABCs of risk management - assessing risk tolerance, balancing diversification, cutting losses with stop-loss orders, doing due diligence, managing emotions, focusing on risk-reward ratio, and employing gradual position sizing - you can navigate the markets with confidence and achieve your trading goals. Stay disciplined, stay informed, and let effective risk management be the cornerstone of your stock trading journey. Happy trading and may your endeavors be both rewarding and fulfilling!
NASDAQ:TSLAEducation
by MindOverMarket
Value InvestingValue Investing - Unearthing Hidden Gems in the Market Introduction In the world of investing, where trends and market sentiments often drive decision-making, value investing stands out as a timeless strategy embraced by legendary investors. Value investing involves searching for undervalued assets that have the potential to deliver substantial returns in the long run. In this blog post, we will delve into the art of value investing and how it allows investors to uncover hidden gems in the market. Understanding Value Investing Value investing is a strategy that seeks to identify assets trading at prices below their intrinsic value. These assets may be temporarily undervalued due to market fluctuations, unfavorable sentiment, or lack of attention from investors. Value investors believe that the market will eventually recognize the true worth of these assets, leading to price appreciation and potential capital gains. The Principles of Value Investing Intrinsic Value Assessment: Value investors analyze the fundamental strengths and weaknesses of a company or asset to estimate its intrinsic value. Fundamental analysis involves evaluating financial statements, earnings, cash flows, and competitive advantages. Margin of Safety: A key principle of value investing is the concept of a margin of safety. Investors aim to buy assets at prices significantly below their calculated intrinsic value to provide a cushion against potential errors in estimation. Patience and Long-Term Perspective: Value investing requires patience and a long-term perspective. It may take time for the market to recognize the undervalued asset's true potential and drive its price higher. Benefits of Value Investing Potential for High Returns: If the market eventually recognizes the true value of an undervalued asset, value investors can reap substantial returns on their investments. Less Susceptible to Market Fluctuations: Value investing tends to be less affected by short-term market trends and sentiments. Investors focus on the underlying fundamentals, which remain relatively stable over time. Contrarian Approach: Value investors often take a contrarian approach, going against prevailing market sentiments. This allows them to find opportunities that others might overlook. Key Strategies for Value Investing Stock Screening: Use stock screening tools to identify companies with low price-to-earnings (P/E) ratios, low price-to-book (P/B) ratios, and strong financials that indicate potential undervaluation. Focus on Dividends: Seek out companies with a history of paying dividends, as this may be a sign of financial stability and value. Avoiding "Value Traps": Be cautious of companies facing structural challenges that may not recover their intrinsic value over time. Conclusion Value investing is a time-tested strategy that has proven successful for legendary investors like Warren Buffett and Benjamin Graham. By focusing on the underlying fundamentals of undervalued assets and exercising patience, value investors can unearth hidden gems in the market and build a portfolio with the potential for significant long-term returns. Embrace the principles of value investing, conduct thorough research, and let your discerning eye lead you to those overlooked opportunities. As you refine your value investing skills, remember that great investment opportunities may sometimes be hidden in plain sight. Happy hunting for hidden gems in the market, and may the strategy of value investing guide you to prosperous investment decisions!
NASDAQ:TSLAEducation
by MindOverMarket
2
Mastering Emotional DisciplineMastering Emotional Discipline: The Key to Successful Investment Decision-Making Introduction Investing in financial markets can be an emotional rollercoaster. Fear, greed, and euphoria often cloud judgment, leading to impulsive and irrational decisions. One crucial lesson for successful investors is the significance of emotional discipline in investment decision-making. In this blog post, we will delve into the importance of keeping emotions in check and how it can lead to more informed and prudent investment choices. The Impact of Emotions on Investment Decisions Emotions can significantly influence how we perceive and react to market movements and financial news. Some common emotional biases include: Fear of Missing Out (FOMO): Feeling the urge to invest in a rapidly rising asset, driven by the fear of missing out on potential gains. Loss Aversion: Placing more emphasis on avoiding losses than achieving gains, often leading to holding onto losing positions for too long. Overconfidence: Being overly confident in one's investment abilities, leading to excessive risk-taking and overconcentration in high-risk assets. Herding Behavior: Following the crowd and making investment decisions based on the actions of others rather than on individual analysis. The Importance of Emotional Discipline Rational Decision-Making: Emotional discipline allows investors to make rational, well-thought-out decisions based on fundamental analysis and research rather than impulsive reactions. Long-Term Perspective: Emotional discipline helps investors maintain a long-term perspective, enabling them to ride out short-term market volatility and focus on their investment goals. Avoiding Herding Behavior: By staying emotionally disciplined, investors can avoid the pitfalls of herd mentality and make independent decisions based on their own convictions. Risk Management: Emotional discipline is essential for effective risk management. It helps investors set and stick to stop-loss levels and position sizes that align with their risk tolerance. Strategies for Maintaining Emotional Discipline Investment Plan: Develop a well-defined investment plan based on your financial goals, risk tolerance, and time horizon. Stick to the plan, even during turbulent market conditions. Avoid Impulsive Actions: Before making any investment decisions, take a step back, and assess the situation objectively. Avoid impulsive actions driven by emotions. Diversification: A diversified portfolio can reduce the impact of individual asset volatility, reducing emotional stress during market fluctuations. Focus on Fundamentals: Rely on fundamental analysis and research rather than short-term market movements. Solid research provides a more objective basis for investment decisions. Conclusion Emotional discipline is a critical aspect of successful investment decision-making. By recognizing and managing emotional biases, investors can make rational choices aligned with their long-term financial goals. Embrace emotional discipline as your guiding light in the tumultuous world of investing, and let it pave the way to a more confident and rewarding investment journey. Remember, investing is a journey, not a race. Stay patient, stay disciplined, and stay on track to achieve your financial aspirations.
NASDAQ:TSLAEducation
by MindOverMarket
The Power of PatienceThe Power of Patience: Long-Term Investing Introduction In the fast-paced world of investing, where market volatility and hype can easily sway decisions, there's one timeless lesson that stands the test of time: the power of patience in long-term investing. In this blog post, we will explore the significance of adopting a long-term investment approach and the benefits it offers to investors who embrace patience as their ally in wealth-building. Understanding Long-Term Investing Long-term investing is an investment strategy focused on holding assets for an extended period, typically years or even decades, to capitalize on the power of compounding and ride the wave of the market's long-term growth. Unlike short-term trading, which aims for quick gains, long-term investing takes a patient and steady approach, emphasizing fundamental analysis and faith in the underlying value of assets. The Benefits of Patience in Long-Term Investing Harnessing the Power of Compounding: Patience allows investors to benefit from the magic of compounding, where investment returns generate additional returns over time. Compounding can significantly amplify wealth accumulation, especially when reinvesting dividends and capital gains. Weathering Market Volatility: Financial markets are inherently volatile, with short-term fluctuations driven by various factors, including economic news and geopolitical events. By staying patient and maintaining a long-term perspective, investors can ride out market fluctuations without being swayed by short-term noise. Reducing Transaction Costs: Frequent trading incurs transaction costs, such as brokerage fees and taxes, which can eat into returns. Long-term investors minimize these costs by holding assets for more extended periods, leading to better overall returns. Opportunity to Invest in Growth: Long-term investors have the luxury of being less concerned about short-term market movements. This freedom allows them to invest in growth-oriented assets and industries with the potential for substantial long-term gains. Benefiting from Dividends: Patience pays off when it comes to dividend investing. Many established companies offer regular dividends to shareholders. By holding on to these stocks for the long term, investors can enjoy a consistent income stream. Keys to Successful Long-Term Investing Invest in Strong Fundamentals: Focus on companies with solid financials, strong management teams, and a competitive advantage in their industries. Fundamental analysis provides insights into the long-term viability of potential investments. Diversify Your Portfolio: Diversification is a critical risk management tool. Spread your investments across different asset classes, sectors, and geographies to reduce the impact of individual asset volatility on your portfolio. Avoid Emotional Decision-Making: Emotions can lead to impulsive decisions in the face of market fluctuations. Stay committed to your long-term investment plan and avoid making knee-jerk reactions to short-term market movements. Regular Portfolio Review: While long-term investing involves holding assets for years, it's essential to periodically review your portfolio's performance and reassess your investment thesis. Conclusion Long-term investing with patience as its cornerstone is a time-tested strategy that has proven successful for countless investors over the years. By embracing the power of compounding, weathering market volatility, and staying committed to sound investment principles, patient investors have the potential to build substantial wealth and achieve their financial goals. So, take a deep breath, adopt a long-term perspective, and let the power of patience work its magic on your investment journey. Happy investing!
NASDAQ:TSLAEducation
by MindOverMarket
The three most worthwhile potential coins to invest in in 2023Today, I will reveal what I think is the best cryptocurrency portfolio in 2023.I think this portfolio will be the best altcoin in 2023. 1.Arweave (AR) Arweave is a Blockchain-based decentralized platform that provides a permanent and tamper-proof data storage solution.It was launched in 2017 by a group of developers led by Sam Williams.The platform aims to solve the problem of data persistence by providing a cost-effective permanent data storage solution that is accessible to everyone. A key feature of Arweave is that it uses a new consensus mechanism called proof of access (PoA).This mechanism is designed to be more energy-efficient than traditional proof-of-work (PoW) or proof-of-stake (PoS) mechanisms, and also allows faster transaction times.The working principle of PoA is to require nodes to prove that they have stored a certain amount of data on the Arweave network in order to participate in the consensus process. Arweave also has a unique economic model designed to motivate data storage on the network.The platform uses a local cryptocurrency called AR to pay for storage.AR is also used to reward nodes that participate in the consensus process, which helps ensure the security and reliability of the network.As of March 2023, AR has a market capitalization of more than 1.5 billion US dollars. A significant use case of Arweave is the creation of a decentralized social media platform.Since the data stored on Arweave is permanent and immutable, it provides a feasible alternative to traditional centralized social media platforms that are vulnerable to censorship and data leakage. In short, Arweave is a blockchain-based platform that provides a cost-effective permanent data storage solution.Its unique consensus mechanism and economic model have helped it gain attention in the blockchain community, and have the potential to revolutionize the way we store and access data in the future. 2.Chainlink (LINK) Chainlink (LINK) is a decentralized oracle network designed to connect smart contracts to real-world data so that they can interact with the outside world in a safe and reliable way.Launched in 2017, Chainlink has quickly become one of the most popular blockchain projects, with a market capitalization of more than US10 billion as of March 2023. The idea behind Chainlink is to solve the trust problem in smart contracts.A smart contract is a self-executing program that runs on the blockchain and is designed to be executed automatically when certain conditions are met.However, these conditions are usually based on data outside the blockchain, such as stock prices or weather data.In order to ensure the accuracy and immutability of this data, smart contracts need to rely on oracles. The oracle is a third-party service that can provide the data required for the execution of smart contracts.However, these oracles can be centralized, which means they are vulnerable to manipulation or attack.Chainlink tries to solve this problem by creating a decentralized oracle network that can provide reliable and secure data for smart contracts. Chainlink works by connecting smart contracts to multiple nodes in its network.These nodes are operated by independent operators, who are motivated to provide accurate data by earning LINK tokens (the native cryptocurrency of the Chainlink network).When a smart contract needs data, it sends requests to multiple nodes in the network.The node then provides its own data, which is aggregated and verified by the Chainlink protocol to ensure accuracy and consistency. One of the key features of Chainlink is its ability to provide data from off-chain sources (such as APIs and Web services).This means that smart contracts can be connected to a wide range of data sources, including traditional financial markets, weather services, and social media platforms. Chainlink is also very popular in the field of decentralized finance (DeFi), it is used to provide reliable and secure price information for various DeFi protocols.This price information is essential to determine the value of various assets and execute transactions in the DeFi ecosystem. In addition to technical features, Chainlink also has a strong and active community of developers and supporters.The project is led by Sergey Nazarov and Steve Ellis, who have a long history in the field of blockchain and smart contracts.Chainlink has also established partnerships with many large companies, including Google, Oracle, and SWIFT, which has helped increase its visibility and adoption. In general, Chainlink is a promising project that aims to solve an important problem in the blockchain field.Its decentralized oracle network has the potential to revolutionize the way smart contracts interact with the outside world, and its growing ecosystem of developers and supporters shows that it will continue to be a major player in the blockchain industry in the coming years. 3.Uniswap(UNI) Uniswap is one of the most popular decentralized exchanges in the cryptocurrency market.Uniswap is a decentralized exchange (DEX) built on the Ethereum blockchain, allowing users to trade Ethereum-based tokens without the need for intermediaries or central institutions.It was created by Hayden Adams in November 2018 and has since become one of the most widely used DEX in the cryptocurrency space. The core of Uniswap is the use of an automatic market maker (AMM) system, which means it relies on a set of algorithms to determine the price of a given asset.This is in stark contrast to traditional centralized exchanges, which usually use order books to match buyers and sellers and determine asset prices. The Uniswap agreement has two main components: the liquidity pool and the Uniswap token (UNI).The liquidity pool is a place where users can deposit their tokens to provide liquidity to the exchange. In return, they can get a portion of the transaction fees generated by the platform.On the other hand, Uniswap tokens are used for governance and allow holders to vote on important decisions related to the agreement. As of March 2023, Uniswap has been rated as one of the top decentralized exchanges, and the market capitalization of UNI tokens exceeds US 10 billion, making it one of the top 25 cryptocurrencies by market capitalization. One of the main advantages of using Uniswap is its decentralized nature, which means that it will not be subject to the same risks as centralized exchanges, such as hacking or government intervention.In addition, since Uniswap is built on the Ethereum blockchain, it benefits from the security and reliability of the Ethereum network. Having said that, there are also some risks in using Uniswap.For example, the value of tokens held in the liquidity pool may fluctuate significantly depending on market conditions, which may cause liquidity providers to suffer losses.In addition, since Uniswap is a decentralized platform, there is no central authority to supervise the platform, which means that users need to be careful to avoid fraud. Overall, Uniswap is a powerful and popular decentralized exchange that provides a series of benefits for cryptocurrency traders and investors.However, as with any investment in the cryptocurrency space, it is important to conduct your own research and carefully consider the risks before investing. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
BITSTAMP:BTCUSDEducation
by Short-term-king
How to use news and data reports to make transactions profitableFrom central bank interest rate resolutions, non-farm payrolls, PMI indexes, inflation rates and other data reports, to geopolitical developments, and even natural disasters, these are major news that foreign exchange investors cannot ignore.Because the trend of the currency is always guided by these major economic events and news developments, it is accompanied by trading opportunities. Of course, not all news is worth trading, so we must be familiar with how economic events will affect currency market trends.For major transaction news and data reports, we can follow the following three steps: 1. Select news events that will cause price fluctuations Foreign exchange traders tend to pay attention to certain key economic data that have an impact on interest rate speculation. These economic data include: central bank decisions and speeches, gross domestic product (GDP) data, employment data, inflation rate and trade balance. 2. Choose the right currency pair Generally speaking, we will choose currency pairs with high liquidity. There are mainly the following 8 pairs: EUR/USD, USD/¥, AUD/USD, GBP/¥, EUR/CHF, and CHF/¥.The sufficient liquidity of currency pairs is conducive to us to use lower transaction costs to win huge profits through greater volatility. 3. Pay attention to the news release time and forecast results We have to trade based on data expectations, that is, the actual announced results are compared with the predicted values.For example, if the non-farm payrolls report is better than expected, the dollar will generally rise, and EUR/USD may fall. In addition, before the data is released, we need to check the price movement of the short-term chart (5, 10, 15-minute chart), and use the closing price to decide whether to trade the current data report.After the price trend is confirmed, open a position and set a take profit and stop loss. In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
Education
by Short-term-king
What is the golden rule of taking profits? For trading stocks, futures, or forex, taking profits is also part of the trading process. For investors, taking profits and adhering to it during a trade is effective. When to take profits? Where is the best position for stop loss and take profit? Which strategy is more profitable? Taking profits and stop loss is one of the most important aspects of trading. If not handled properly, it could lead to losses. In previous articles, we have discussed the rule of stop loss. This chapter will discuss the rule of taking profits. Investors are advised to follow and read this article. If it is helpful, please give it a like. Thank you. Methods of taking profits Taking profits means closing the position and securing profits when the trading goal is achieved to prevent market reversal. Taking profits can be divided into static and dynamic methods. Static taking profits means setting a target for taking profits and closing the position when the target is reached. For example, if the profit expectation is 100 points and the price has risen 100 points, the position is closed to take profits. The target for taking profits is fixed and static. Dynamic taking profits means the profit target is dynamic and is held until the price meets a dynamic standard before closing the position. For example, when holding a long position and floating profits, close the position when the market price breaks the bearish level. Traders cannot know in advance where the bearish level will appear and need to monitor the market dynamics. Next, we will discuss five methods of taking profits. Method 1: Fixed point profit taking This is the simplest method of static taking profits. After entering the position, set a fixed profit space. This profit-taking method is more suitable for intraday and short-term trading. For example, after entering an intraday trading position, set a fixed profit-taking point of 50 points. Intraday trading has a relatively obvious characteristic of fluctuating trends, and market prices tend to rebound and even fluctuate repeatedly. The profits from holding positions during market rebound may be given back, so setting a fixed profit-taking point can be more advantageous during trading. In practical trading, the number of fixed stop-loss points should be set according to the volatility of different products. For products with high volatility, set a larger number of fixed stop-loss points, and for products with low volatility, set a smaller number of fixed stop-loss points. Please note that this method should not be underestimated simply because it is simple. Whether this method is useful or not depends on the specific usage environment. Method 2: Fixed profit and loss ratio take profit. This is a commonly used static take profit method in medium and short-term trading. First, let's talk about the profit and loss ratio. The ratio of the profit space of an order to the stop loss space is the profit and loss ratio. For example, if the profit is 100 points and the stop loss is 50 points, the profit and loss ratio is 2:1. Fixed profit and loss ratio means that the take profit is set according to a fixed ratio based on the stop loss space. For example, if the stop loss of an order is 100 points, setting the take profit at 100 points results in a profit and loss ratio of 1:1. Setting the take profit at 150 points results in a profit and loss ratio of 1.5:1. Setting the take profit at 200 points results in a profit and loss ratio of 2:1, and so on. The fixed profit and loss ratio method is easy to operate and highly executable. Moreover, when the market fluctuates and the stop loss space expands, the take profit space will also expand accordingly, making it very flexible. Method 3: Take profit combined with technical indicators. This is also a static take profit method. After entering an order, the take profit is set based on technical indicators. For example, setting the take profit at the level of previous highs and lows, or at the support and resistance levels of the Bollinger Bands or important moving averages, is feasible. In addition, in practical trading, it is common to enter and exit at small time frames while looking at the support and resistance levels of larger time frames. For example, entering at the 5-minute level and setting the take profit at the support and resistance level of the 1-hour chart, or entering at the hourly level and setting the take profit at the Bollinger upper and lower bands of the daily chart, is essentially a logic of "going small and looking big". Method 4: Take profit following the trend. This is a dynamic take profit mode and a trend-based take profit strategy. After entering an order, the position is held following the trend indicator, and the position is held until a reversal signal is issued, at which point the take profit is closed. Tracking with trend lines, channel lines, and turning points in the market are all common practices in daily trading. Method 5: Combination of multiple methods, batch-wise profit taking. The above four methods are the most mainstream and commonly used methods, but each method has its pros and cons. For example, the fixed profit and loss ratio method cannot hold onto trend profits, and the trend tracking method cannot make profits in volatile markets. Therefore, some clever traders combine these methods and take profits in batches. For example, after the order is entered, when the profit and loss ratio reaches 1:1, part of the position is closed, and the remaining position is exited using the trend tracking method to achieve greater profits. In practical trading, traders can combine the above profit-taking methods in different ways, such as combining the support and resistance levels of the previous high with the fixed profit and loss ratio, or combining the support and resistance levels of the previous high with the trend tracking method. After discussing these five profit-taking methods, it is only providing traders with an idea, and the specific results of practical trading must be reviewed and analyzed in combination with their own trading systems. OANDA:XAUUSD FXOPEN:XAUUSD
TVC:GOLDEducation
by Ice_and_Fire1
5
The Seven Major Factors Affecting Gold.Firstly, the demand for gold commodities affects the price. In addition to its use as a daily decorative item, gold plays an important role in industry, occupying an irreplaceable position in industries such as dentistry, electronics, and others. As a hedge tool, the price of gold is influenced by demand, and the supply and demand relationship directly affects the price of gold. Changes in production will also affect the gold price, such as the demand for teeth in Japan and the demand for jewelry in India, both of which directly affect the monthly price trend of gold each year. Secondly, the gold output determines the supply-demand balance of gold. The production of gold-producing countries directly affects the supply-demand balance of gold. Currently, China has the largest gold production, followed by South Africa. Any unexpected event, such as strikes and other special situations, will have an impact on the gold price. Thirdly, international interest rates and exchange rates directly affect the gold price. Interest rates and exchange rates have a direct impact on the gold price, especially the trend of the US dollar. The international status of the US gold price directly determines the status of the country's international finance, and the price of the US dollar also directly affects the price of gold. As the US dollar, which also has investment functions like gold, it directly affects the gold price. If the investment trend of the US dollar is strong, gold investment will be relatively less, while the opposite is true for the US dollar in a weak investment market, where the role of gold as a reserve asset and a hedge will be stronger. Fourthly, inflation stimulates the gold price. When the consumer price index rises and inflation affects investments, gold is no exception. When the price fluctuation of a country is severe, and the inflation rate is high, and the price fluctuation is severe, people's panic will intensify. When purchasing power declines, people will worry about future security and choose to buy gold to hedge, which will cause the gold price to continue to rise. Although the current role of gold in fighting inflation is not as significant as before, high inflation will still stimulate the gold price. Fifthly, political situations such as wars can stimulate the gold price. Political instability promotes the rise of the gold price, and war causes a rise in commodity prices, leading to a rise in gold prices. Similarly, as a critical strategic material, the price of gold has a remarkable correlation with the price of oil. When the price of oil rises, the gold price rises as well. Conversely, when the price of oil falls, the gold price also falls. Sixth, as a safe-haven demand, gold is the first choice Due to the small total reserves, the price of gold is relatively stable, and because it has served as a currency, it is an excellent tool for hedging and hedging. As an important hedging tool, gold has strong political sensitivity. Jewelry in prosperous times, gold in troubled times, when the economy is in recession, investment will favor gold more, and it will also directly affect the price of gold. 7. Investors’ psychological expectations The psychological expectations of investors are an important factor affecting the price of gold, but they usually do not act alone. Instead, they often change in conjunction with the variations in the aforementioned factors, amplifying or reducing the expected value of gold and causing significant differences in its price. Following the footsteps of the market, respecting the market, and aweing the market is to follow the market Pay attention to me and you will discover that trading is so simple and enjoyable!
FXOPEN:XAUUSDEducation
by Ice_and_Fire1
Correlation between FX and Equities! (Chicken or the Egg?)Which came first, the chicken or the egg? Traders all over the globe are constantly looking for an edge, something that's going to give them an extra indication on market directional movements prior to them unfolding. I know from personal experiences and from chatting people at the firm that many traders lean towards finding correlation between the equities market and the FX market. There are a lot of analysts out there that say the equities market is what moves the FX market, and in return there are a lot of people that say the FX market is what moves the equities market. So, which one is it? Reality is will never know. There have been many of times where the FX market and shows clear indication of direction and then about a day later or a few hours later we have the equities follow suit. For example the RBA's recent decision to hike interest rates by .25% instead of 0.5% sent the Aussie dollar down, but when you move over to the AUS200 or look at General Equities in the ASX, you'll see that they had their biggest day in 2.5 years. Then there are times, and this is more into day trading, where the indices in the equities movements tend to correlate well moving into the FX markets. So there is evidence to support both sides. Not ideal. It goes without saying that correlation between equities and FX is slowly starting to fade as volumes kick up since we are in the technologically advanced era. But, what is or was the correlation and how does it work? The basic theory (aged) is that when equity markets rise, confidence in that specific country grows well, leading to an inflow of funds from foreign investors. Therefore, equities go up, FX value goes up. It's simple supply and demand when you look at it. If the equities are going up and you're a foreign investor and you want to buy into those equities, it creates demand for holding, let's say, the US dollar if I wanted to buy into the S&P 500. On the flip side, when the equity markets are falling. Then confidence falters, causing investors to convert their invested funds back to their own currencies outside of that country. This is a general theory and I don't recommend basing any of your trading decisions on this, because if you actually have a look at the charts and the correlation, you'll notice that recently it's not been too hot. While you do get a general directional bias, one tends to move before the other and they tend to be quite random in which one goes first. If you have the ability or the skill to be able to work out when something is correlating and when something isn't, then for sure I think you'll be able to find an edge in the market trading some kind of correlation between equities and FX. One correlation I have seen to be quiet useful in recent times is the S&P 500 And the Nikkei. Although in the Asian session the Nikkei is open in the S&P 500 isn't. Usually you see the S&P move and the Nikkei follow suit. Keep an eye on that correlation and tell me if you find any patterns. As a whole, trading correlations can give you an edge in the market. It can provide you with valuable information when it comes to trading, whether you are trading FX or trading Equities. But it's not as simple as it seems. It will take more diving and understanding the markets on a deeper level to know when their correlating and to know when to ignore. I hope you guys have enjoyed this article. If so, please give us a like leave and a comment. It does help the post a fair bit and I'll see you next week for some more content. Happy Trading! -Jordon Mellor
SP:SPXEducation
by TradeThePool
EducationBitcoin price history The price of Bitcoin has seen big changes since BTC was first launched in 2009. Initially, Bitcoin didn’t really have an established price, and most people who owned BTC obtained it through mining. Eventually, a growing number of people became interested in Bitcoin, and began buying coins from other holders. Initially, these purchases were facilitated directly between buyers and sellers through web forums like Bitcoin Talk. Eventually, Bitcoin exchanges were created and offered a more streamlined and automated way of buying and selling Bitcoin. One of the first ever Bitcoin exchanges was Bitcoin Market, which launched in 2010. Bitcoin Market and other platforms established a public market for Bitcoin, making it possible to track the price of BTC as expressed in US dollars and other currencies. The first price of Bitcoin was $0.07, according to CoinCodex data, which tracks the Bitcoin price starting from August 2010. Let’s take a look at the historical Bitcoin price chart and highlight some important milestones: $0.10 – The Bitcoin price first surpassed $0.10 in October of 2010 $1 – The first time that Bitcoin was worth $1 was in February of 2011 $10 – The first time that the BTC price climbed over $10 was in August 2012 $100 – The first time that Bitcoin was worth more than $100 was in April 2013 $1,000 – Bitcoin surpassed $1,000 for the first time in its history in December 2013 $10,000 – Bitcoin reached $10,000 for the first time in December 2017 $20,000 – Bitcoin reached $20,000 for the first time in December 2020 $30,000 – The first time Bitcoin reached $30,000 was in January 2021 $40,000 – The first time Bitcoin reached $40,000 was in January 2021 $50,000 – Bitcoin first reached the $50,000 price level in February 2021 $60,000 – The first time Bitcoin reached $60,000 was in April 2021
BITSTAMP:BTCUSDEducation
by Ch1m0
How to use Fundamental Analysis in FX.Fundamental analysis is something that's not overly spoken about when it comes to FX trading. Now, a lot of educators and gurus out there recommend you check the FX calendar and you understand when different news events are due as it is important to be risk off during these times. But very few of them actually speak about how you can utilize different aspects of fundamental analysis to actually gain a confirmation bias in trading. When I'm trading the one hour or 4 hour charts, I like to have some kind of definition or reason behind what I'm actually investing in. Do not forget, we are buying an asset when we're trading, so you are investing into an asset with an expectation of the value going up or down. Now, while some people play the game of probability based on technical analysis, when I am trading these higher timeframes, I do like to have some reason or at least a good idea on why I want to invest in these certain asset. That is where fundamental analysis comes into it. Fundamental analysis doesn't change very often, it flips and turns once every two to three weeks. However, you do notice a trend after a while of picking what you think is the week and what you think is the strong currencies at the time. Movements on the chart tend end up playing out along those lines, so you can increase your win rate by only taking positions that have the same correlation with your fundamental analysis. In terms of undergoing fundamental analysis there is a wide range of ways to do it. You can read news and you can get an understanding of what experts are saying about different currencies, what the economic conditions are and even factor into the side of where you are based and understand how the businesses are running in your country. You can be more short term bias and you can have a look at what the news has been forecasted over the next week, which can give you an indication in these different news events whether or not experts are forecasting growth or shrinking. Usually, these forecasts are pretty good. Once you've read through a number of different articles and you start actually reading what different news means, you will start to generate a bit of a picture on whether or not the economy is going strong, whether the economy is shrinking, or whether we actually just sitting neutral kind of cruising. From here you can determine which pairs you want to be bullish on, which pairs you want to be bearish on, and which pairs you just not really looking to trade over the next week. Then you can dive into your technical analysis on those pairs. There are multiple benefits to fundamental analysis, not only increasing win rate when you get it right, but also increasing your emotional state while in the trade. I know personally when I'm holding onto trades, if I have that fundamental push behind me as well, I tend to hold on a little bit longer and let profits run as compared to what I do if I'm only using technical analysis. Using fundamental analysis can bring you an extra edge. It can turn odds into your favor as a trader, don't sleep on it is massively impressive on the results you can generate from using fundamental analysis.
Education
by the5erstrading
Crypto101 - What is DeFi & Blockchain ?Hi Traders, Investors and Speculators📈📉 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Whether you've just gotten into crypto trading or you're trying to expand your knowledge on what this space has to offer; this post is for you! Decentralized finance or DeFi, is a financial ecosystem based on blockchain technology. So lets recap, what Is a blockchain exactly? Blockchain is a software technology, it is basically computer coding that creates a usable service like an app or website for the public. Most blockchains are entirely open-source software. This means that anyone and everyone can view its code. The first-ever implementation of Blockchain was originally written in C++ (coding language). Blockchain and it's possible use cases was first introduced to the world in the Bitcoin Whitepaper, written by the infamous Satoshi Nakamoto (the pseudonym used by the creator or creators of BTC). A blockchain is an online database that is shared to many computer networks. This means that if one computer in the network fails, the data is unaffected and transactions carries on. It is not dependent on one single data storage facility. As a database, a blockchain stores information electronically in digital format. A blockchain collects information in groups, known as blocks, that holds many sets of information (like time of transactions, amounts etc.). Blocks have certain storage capacities and, when filled, are closed and linked to the previously filled block, forming a chain of data known as the blockchain. An online database usually structures its data into tables, whereas a blockchain, as its name implies, structures its data into "3D chunks" (blocks) that link to each other. For easy reference and transparency, each block in the chain is given an exact timestamp when it is added to the chain. The revolutionary innovation idea behind blockchain is that it guarantees the truthfulness and security of data and generates trust without the need for a government/private institution to validate it. Back to DeFi - In centralized finance , your money is held by banks and corporations whose main goal is to make money . The financial system is full of third parties who facilitate money movement between parties, with each one charging fees for using their services. The idea behind DeFi was to create a system that cuts out these third parties, their fees and the time spent on all the interaction between them. Defi is a technology built on top of blockchain - it can be an app or a website for example, which means that is was written in code language by software programmers. It lets users buy and sell virtual assets (like crypto and NFT's) and use financial services as a form of investment or financing without middlemen/banks. This means you can borrow, lend and invest - but without a centralized banking institution. In summary, DeFi is a subcategory within the broader crypto space. DeFi offers many of the services of the mainstream financial world but controlled by the masses instead of a central entity. And instead of your information being filed on paper and stored by a banker, your information is captured digitally and stored in a block with your permission. Many of the initial DeFi applications were built on Ethereum (which is a blockchain technology, but the code is different to Bitcoin's, in other words it operates/works differently). The majority of money in DeFi remains concentrated there. Lending may have started it all, but DeFi applications now have many use cases, giving participants access to saving, investing, trading, market-making and more. A prime example of such a market is PancakeSwap (CAKEUSDT). PancakeSwap is a decentralized exchange native to BNB Chain (Binance chain). In other words, it shares some similarities with established platforms like UniSwap in that users can swap their coins for other coins. The only difference is that PancakeSwap focuses on BEP20 tokens – a specific token standard developed by Binance . The BEP20 standard is essentially a checklist of functions new tokens must be able to perform in order to be compatible with the broader Binance ecosystem of dapps, wallets and other services. PancakeSwap uses liquidity pools instead of counterparties/orders from other traders. A liquidity pool in this context refers to funds deposited by investors – which can be anyone from around the world – into smart contracts for the aim of providing liquidity to traders. With this system, buyers do not have to wait to be matched with sellers, or vice versa. Whenever someone wants to trade one token for another, they simply deposit the token they have into the pool and withdraw the other token they wish to receive. That said, PancakeSwap is not just for swapping coins. You can also take up the role of a liquidity provider (that is, you can deposit tokens in a liquidity pool for the chance of earning a share of trading fees paid by those trading against the pool in question). Yield Farming is another income-generating opportunity available on PancakeSwap. With this, you can farm for a token called CAKE. So why would you want a token? Tokens are like the money video-game players earn while killing monsters, money they can use to buy gear or weapons. I personally love collecting my Glimmer in Destiny 2. But with blockchains, tokens aren't limited. They can be earned in one way and used in lots of other ways. They usually represent either ownership in something or access to some service. For example, in the Brave browser, ads can only be bought using basic attention token (BAT). I think I'll cover more on this in another post, otherwise this will become a too long read. Final Thoughts 💭 Even though banks are slow and inefficient (to name only a few of the problems), there is still something that comes with using a bank that crypto cannot (yet fully) offer - guarantees and peace of mind. At least at this point. I believe in a future where blockchain is easily accessible, open but at the same time protects user privacy, transparent, decentralized and safe. But the truth is, we're still far away from that. Blockchain is in its infancy, being used by too many opportunists and crooks. So be careful when you invest in DeFi. The beautiful dream of blockchain still contains too many scammers that have no intention of cutting out banks; instead they want to get to the bank FIRST. __________________________ 👀Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 📉 Hit like & Follow 🔔 We thank you for your support ! CryptoCheck
Education
by Crypto-Check-
59
Etherum 2.0 is COMING... More DetailsHello friends So finally we will ee ETH 2.0 as soon as posibble. I want to explain more details about MERGE upgrade and launch day. then have a look at some NEWS about ETH 2.0. lets see again whats Etherum 2.0 and MERGE upgrade? Ethereum will move from a proof-of-work consensus mechanism to a proof-of-stake blockchain known as MERGE Right now Ethereum uses the same consensus mechanism as Bitcoin known as proof of work. This requires miners to validate transactions and keep the network secure. It is slow, costly, and uses large amounts of energy by design. Proof of stake is different because it gets rid of miners altogether and uses validators (people who “stake”—or lock-up—Ethereum to keep the network secure and running). After the upgrade the only way to create new ETH will be to stake pre-existing ETH on the network which analysts expect could have a deflationary impact on the cryptocurrency. Moving to proof of stake will then make Ethereum “99% more energy efficient. Ethereum Merge expected between 10 and 20 September. Now lets check some HOT news about this happening: 22 August 2022: CME Group to launch Ethereum options prior to ETH 2.0 Merge 17 August 2022: Coinbase pausing ETH deposits during Merge is ‘not significant’ 12 August 2022: Ethereum Merge to take place 15/16 September after Goerli success I hope this upgrade be successful and after that Vitalik can go ahead SHARDING mechanism... More incredible things will be happpen... just BE patient... Share me your opinion about this article. are you like this type of atticles??? so let me know.. thanks
CRYPTOCAP:ETHEducation
by TraderAmin-KZ
4
Using BTC Dominance With Current Bitcoin PriceSome people monitor bitcoin price along with bitcoin dominance to help them make trading decisions. Although they are not iron laws, here are some potential outcomes that various combinations of BTC price and dominance may be indicative of. 1. When the price and dominance of BTC are rising, it could signal a potential bitcoin bull market. 2. When the price of BTC is rising but BTC dominance is falling, it could signal a potential altcoin bull market. 3. When the price of BTC is falling but BTC dominance is rising, it could signal a potential altcoin bear market. 4. When the price and dominance of BTC are falling, it could signal a potential bear trend for the entire crypto market. 5. While these two factors do not imply a definite bull or bear market, historical observations suggest a correlation.
CRYPTOCAP:BTC.DEducation
by yaser_rahmati
1
A Dive Into My Swing Trading Approach (+setup) This video was a short synthesis of my swing trading approach. For the amount of information I presented, I'm not expecting to successfully being able to convey my means and ways in one short video, but I'm glad if I could at least show a different perspective. Some important things I forgot to mention: - The tolerance for identifying a visual weak liquidity pattern is 2 ticks, 3 ticks during highly volatile days (for the ES). This can change from one market to another. Anything more than 2/3 ticks is considered a move of conviction supported by strong liquidity, a market that has the confidence to see what's beyond a certain point to then either sharply reverse or move forward. - Using this method I CANNOT know what the market makers are exactly doing, there is no way to know, they will always be a step ahead of any brilliant retail trader. However, we can understand their logic and the weak traders' logic, the latter is the type we want to trade against. SETUP As I said, I favour a short trade, but as of today I have to remain on the sidelines. During this times is important to be flexible and change ones bias if that's what the market is suggesting. I will post my set up (if any) in due course.
CME_MINI:ES1!Education
by LionLazzari
What Is Market Capitalization? 1. Definition A. For a cryptocurrency like Bitcoin, market capitalization (or market cap) is the total value of all the coins that have been mined. B. It’s calculated by multiplying the number of coins in circulation by the current market price of a single coin. 2. How is it measured? C. Market Cap = Price × Circulating Supply 3. What can you do with market cap? D. Market cap allows you to compare the total value of one cryptocurrency with another so you can make more informed investment decisions. E. Cryptocurrencies are classified by their market cap into three categories (Large-cap , Mid-cap , Small-cap) 4. Large-cap cryptocurrencies F. Including Bitcoin and Ethereum, have a market cap of more than $10 billion. G. Investors consider them to be lower risk investments because they have a demonstrated track-record of growth and often have higher liquidity. H. They can withstand a higher volume of people cashing out without the price being dramatically impacted. 5. Mid-cap cryptocurrencies I. Have market caps between $1 billion and $10 billion. J. They generally are considered to have more untapped potential upside but also higher risk. 6. Small-cap cryptocurrencies K. Have a market cap of less than $1 billion and are most susceptible to dramatic swings based on market sentiment.
CRYPTOCAP:TOTALEducation
by yaser_rahmati
Crypto101 - How to spot a scam 👀Hi Traders, Investors and Speculators 📉📈 Ev here. Been trading crypto since 2017 and later got into stocks. I have 3 board exams on financial markets and studied economics from a top tier university for a year. Hundreds if not thousands of new cryptocurrencies launch monthly. All with big promises of use case, flashing tech and a stock-standard wide mouthed YouTube guy telling you how high it will moon. With these new tokens and coins also comes many initial coin offerings (ICOs) that are often scams. The demand for these have grown, even despite the fact that many people get rugpulled. This mostly unregulated market makes for a perfect place to scam innocent people out of their money, with little consequences to the thieves. When it comes to cryptocurrencies, one of the biggest challenges for investors is not getting caught up in the hype. Digital currencies have quickly risen to prominence in the portfolios of many retail and institutional investors. At the same time, people are still shocked when something like the recent LUNAUSDT / TERRA happens. Let's discuss a few ways to navigate this wild west market: - Research the team. Perhaps the single most important success factor for any ICO or cryptocurrency is the developers and administrative team behind the project. The cryptocurrency space is dominated by major names, with superstar developers like Ethereum ETHUSDT founder Vitalik Buterin capable of making or breaking new projects simply by having their names listed on a development team. For that reason, it's increasingly common for scammers to invent fake founders and biographies for their projects. - Check the whitepaper. The whitepaper should lay out the background, goals, strategy, concerns, and timeline for implementation for any blockchain-related project. Whitepapers can be incredibly revealing: companies that have a flashy website may reveal they lack a fundamentally sound concept. On the other hand, a company with a website containing spelling errors may have a whitepaper that indicates a rock-solid concept and a carefully conceived implementation plan. - It it sounds too good to be true, it probably is. The idea of getting rich quick on an investment in a hot new project sure is tempting. Keep an eye out as you look for new investment opportunities in the ICO and cryptocurrency spaces. Remember that projects sounding too good to be true , likely are. Spend time scrutinizing every detail, and assume that the absence of a piece of crucial information may be an attempt to hide an unsound model or concept. Look for outside sources to verify the legitimacy of any project before making an investment. Ask questions that you can't already find the answers to. Now, the project on the chart - BURGERUSDT . BurgerCities crypto was developed on the BNB Chain ecosystem and is now linked to MetaFi . People compete for rewards on the BurgerCities platform. BurgerCities transitioned from being a DeFi product available on the BNB chain as Burgerswap to integrating DeFi and NFT into a more expansive metaverse space, producing uniform and standardized Web3 behavioral metaverse universe. Being a metaverse-oriented project, BurgerCities supports the NFT concept making it possible for users to earn returns through gameplay. Don't get me wrong; I am not stating that Burger coin is a scam - I am merely pointing out that you should always do your due diligence research on new coins / projects, and be extra cautious when the coin / token has a funny name. _________________ 👀 Follow us here on TradingView for daily updates and trade ideas on crypto , stocks and commodities 💎 👍Hit like & Follow 🔔 We thank you for your support ! CryptoCheck
BEducation
by Crypto-Check-
87
THE MOST IMPORTANT FOREX FUNDAMENTALS 📰 Hey traders, Even though I am a pure technician and I rely only on technical analysis when I trade, we can not deny the fact that fundamentals are the main driver of the financial markets. In this post, we will discuss the most important fundamentals that affect forex market. 📍Unemployment rate. Unemployment rate reflects the percentage of people without a job in a selected country or region. Rising unemployment rate usually signifies an unhealthy state of the economy and negatively affects the currency strength. 📍Housing prices. Housing prices reflect people's demand for housing. Rising rate reflects a healthy state of the economy, strengthening purchasing power of the individuals and their confidence in the future. Growing demand for housing is considered to be one of the most important drivers in the economy. 📍Inflation. Inflation reflects the purchasing power of a currency. It is usually measured by evaluation of the price of the selected basket of goods or services over some period. High inflation is usually the primary indicator of the weakness of the currency and the unhealthy state of the economy. 📍Monetary policy. Monetary policy is the actions of central banks related to money supply in the economy. There are two main levers: interests rates and bank reserve requirements. Higher interest rates suppress the economy, making the currency stronger. Lower interests rates increase the money supply, making the economy grow but devaluing the national currency. 📍Political discourse. Political discourse is the social, economical and geopolitical policies of the national government. Political ideology determines the set of priorities for the ruling party that directly impacts the state of the economy. 📍Payrolls and earnings. Payroll reports reflect the dynamic of the creation of new jobs by the economy, while average earnings show the increase or decrease of the earnings of the individuals. Growing earnings and payrolls positively affect the value of a national currency and signify the expansion of the economy. Pay closes attention to these fundamentals and monitor how the market reacts to that data. What fundamentals do you consider to be the most important? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
5